Re: [IAC#RG] Obscene: How Mittal could spend 60 million Euros on daughter's wedding in Spain

So it is our ,own, and, old Ajit da!!!
If you still remember,where I stay,
Do drop in.
J.K.Chaudhry

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> On Dec 15, 2013, at 11:50 AM, AK Bhattacharyya <ajitkbhattacharyya@yahoo.com> wrote:
>
> Convenor
> This information will be of interest to Govt. of West Bengal who are deeply in debt and wants some relief.
> With kind regards
>
>
>
> A.K.BHATTACHARYYA
>
> F.I.StructE (UK), FIE (India), FIBE, FIRT
> H-2A, Hauzkhas, New Delhi -16, Ph:011-26854127
>
> --------------------------------------------
> On Fri, 12/13/13, Sarbajit Roy <sroy.mb@gmail.com> wrote:
>
> Subject: [IAC#RG] Obscene: How Mittal could spend 60 million Euros on daughter's wedding in Spain
> To: "indiaresists" <indiaresists@lists.riseup.net>, "indiamanager" <indiamanager@googlegroups.com>
> Date: Friday, December 13, 2013, 10:05 PM
>
> Bully for the
> Spaniards who are "upset at this obscene display of
> wealth which trashes their culture", What
> were we Indians doing ? Does the AAM AADMI PARTY have
> anything to do with this, and why their deafening silence
> on this scandal ? Did Sunita Kejriwal ever investigate this
> serious fraud on the Hindustani nation ?
> (http://www.jswispat.in/management.htm)
> And why were the Karat's so quiet when
> Hindustan's starving workers were angry but goras were
> apparently chomping foie-de-gras (mashed goose liver)
> secretly behind the shrubberys?
>
> http://www.moneylife.in/article/pramod-mittal-spent-60-million-euros-on-daughters-lavish-wedding/35570.html?
>
>
> Pramod Mittal
> represents but one example of the quiet,
> high-stakes game of rich, influential bank defaulters that
> often misuse
> the CDR route without a slight change in their lavish
> lifestyle or
> spending
>
>
>
> Pramod Mittal, the younger brother of steel tycoon Lakshmi
> Mittal, owes
> a lot of money to Indian banks. However, instead of
> repaying bank
> loans, both Pramod and his brother Vinod
> Mittal have managed to use the corporate debt restructuring
> (CDR) route
> repeatedly to escape unscathed. Surprisingly, despite being
> a bank
> defaulter, Pramod Mittal has reportedly spent 60 million
> Euros (about
> Rs505 crore) for his daughter's lavish wedding in
> Barcelona.
>
>
>
> According to a report from
> Vanitatis
> (Spanish news portal), the wedding of investment banker
> Gulraj Behl and
> Shristi Mittal, the 26-year old daughter of Pramod Mittal
> and exercise
> director of Global Resources of Europe, could become one of
> the five
> most expensive weddings in history, as per the figures.
> "One of the
> employees of the municipality that is well connected to high
> places told
> us that probably the figure among all parties, lodging,
> rental of
> premises, hotel rooms and other expenses to be determined,
> could exceed
> 60 million Euros. So, according to Forbes, this
> wedding would
> be located in the second, between Mohammed bin Zayed Al
> Nahyan, ruler of
> Abu Dhabi, and Princess Salama, where it cost 76.25 million
> Euros in
> 1981 and of the Prince of Wales, for which 53 million Euros
> was paid in
> that year also. For now, Lakshmi Mittal's daughter,
> Vanisha, holds third
> place when she married in 2004 with Amit Bhatia, the Indian
> billionaire
> and disbursed no more and no less than 46 million
> Euros," the report
> says.
>
>
>
> Pramod Mittal wanted discretion for this wedding but his
> ostentation made news. Mumbai Mirror,
> using quotes from Spanish media had said politicians and
> prominent
> citizens trashed the whole affair (the Mittal wedding) as
> 'obscene
> display of wealth' for which 'the national pride was
> on sale'.
>
>
>
> Coming back to Pramod Mittal's outstanding bank dues,
> as reported by
> Moneylife,
> during the end 2010, State Bank of India (SBI) gave a fresh
> loan worth
> Rs130 crore to Ispat Industries (it was controlled by the
> Mittals at
> that time) adjusting Rs30 crore against earlier
> dues.
>
>
>
> So, why would the bank sanction a fresh loan if it has to
> take back
> part of the money? Apparently, SBI was indulging in what is
> called
> 'evergreening'. By getting back part of the money, SBI
> has avoided
> classifying the loan as 'bad' which would have
> forced a series of
> actions. But SBI's action is in violation of the spirit
> of the Reserve
> Bank of India (RBI) guidelines. When Moneylife
> contacted them about this largesse, both SBI and Ispat
> Industries kept mum at that time.
>
>
>
> Ispat Industries has failed to live up to every commitment
> it made as
> part of the corporate debt restructuring package so
> generously approved
> by lenders in 2003.
>
>
>
> Pointing out that the credit appraisal committees of public
> sector
> banks (PSBs) had powers to sanction single loans up to Rs400
> crore in
> the case of large banks and up to Rs250 crore in the case of
> small
> banks, Vishwas Utagi, general secretary, Maharashtra State
> Bank
> Employees Federation, an affiliate of All India Bank
> Employees'
> Association (AIBEA), alleged that promoters of large defaulting
> companies diverted bank loans into real estate
> and floated cricket outfits for competing in domestic league
> matches.
>
>
>
>
> According to the bank employee union, over the past seven
> years, there
> are fresh bad loans worth Rs4.95 lakh crore only in PSBs,
> while during
> the same period, these lenders wrote off band debts worth
> Rs1.4 lakh
> crore. Top four defaulters of state-run banks constitute
> Rs23,000 crore
> of NPAs, the AIBEA said.
>
>
>
> On 15 September 2010, Ispat shares soared in the
> foolish hope of
> a lender-blessed takeover, but fell immediately when the
> company denied
> as 'baseless' a report claiming that lending
> institutions had
> threatened to sell Ispat's debt-converted-to-equity to
> rivals such as
> Arcelor Mittal or Tata Steel. The Mittals claimed in a
> statement that
> "the lenders have reposed tremendous faith in the company
> since its
> incorporation"—a fact that ought to trigger a
> full-fledged government
> investigation.
>
>
>
> This was just repetition of earlier scene. In July 2006,
> when Ispat
> wasn't repaying lenders, a media report said that ICICI
> Bank wanted to
> force Ispat's merger with Jindal Steel. At that time, it
> was already
> clear that the Mittals had squandered an excellent
> opportunity to ride
> the commodity boom and take advantage of the massive
> write-offs granted
> to all steel companies under what was to be a one-time CDR
> exercise.
> Within hours, the Mittals denied the report and the lenders
> didn't
> attempt to change the management either. Instead, they
> quietly cleared
> an unprecedented second CDR, which was officially disallowed
> under the
> Reserve Bank of India (RBI) rules unless it was accompanied
> by a change
> in management.
>
>
>
> In the same year, the lenders watched silently as Ispat's
> losses
> continued to mount but the Mittals splurged 14 million Euros
> to acquire a
> Bulgarian football club.
>
>
>
> Quoting business analyst and author Alam Srinivas from
> Governance Now, the Hindustan Times,
> said, "Instead of trying to get back their money lent to
> Ispat, the
> banks helped the promoters to continue their unviable
> ways."
>
>
>
> As on 30 June 2010, Ispat Industries owed over Rs7,200
> crore to 15
> lenders and had overdues exceeding Rs400 crore while its
> consolidated
> loss stood at Rs323 crore for a 15-month
> period.
>
>
>
> However, both Pramod and Vinod Mittal ran out of their luck
> by the end of 2010. Three things sealed the fate of Ispat as it was taken over by
> Sajjan Jindal-led JSW Steel.
> Firstly, pressure from government agencies, especially the
> Income Tax
> department that conducted nationwide raids/searches on the
> company and
> its promoters. Secondly, lenders were under severe pressure
> because they
> would have to declare over Rs10,000 crore of outstanding
> borrowings as
> bad loans if some solution was not found before 31 March
> 2011. Also,
> with the loan-for-share scam having badly burned lenders
> such as Life
> Insurance Corp of India (LIC) and LIC Housing Finance, even
> the most
> sympathetic lenders were scared to bend the rules for the
> Mittal
> brothers once again. Finally, Ispat was unable to pay
> salaries and
> utility bills and it was clear that any delay in selling the
> plant would
> have led to vandalisation and reduced
> value.
>
>
>
> Ispat Industries got their debt restructured in 2003 and
> 2009, with
> promises to complete unfinished parts of their steel
> projects and even
> sell expensive flats.
>
>
>
> Samar Halarnkar wrote in his article in Hindustan
> Times, that
> "In small towns, we found angry workers and rusting
> factories, but the
> owners led unchanging, caviar lifestyles. We found heated
> swimming
> pools, rooftop helipads, foreign homes, fast cars — and
> humungous
> loans."
>
>
>
> "It was only in 2010, when the Mittal brothers asked
> for another debt
> restructuring that banks — after more than a decade of
> throwing good
> money after bad — forced them to sell the company. A year
> later, in an
> Istanbul palace, Pramod organised for his daughter one of
> the biggest,
> fattest Indian weddings the Turks had ever seen," the
> report says.
>
>
>
> In short, while lenders use all methods to recover dues
> from aam admi
> or the common man, when it comes to rich, influential and
> resourceful
> defaulters, there are different rules for extending the debt
> line and
> life.
>
>
>
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